Targa Resources Partners (NYSE: NGLS) and Clean Energy Fuels (NASDAQ:CLNE) are both oil & gas refining and marketing – nec companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
This table compares Targa Resources Partners and Clean Energy Fuels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Targa Resources Partners||3.27%||0.29%||1.61%|
|Clean Energy Fuels||-15.47%||-10.52%||-6.31%|
Targa Resources Partners pays an annual dividend of $3.30 per share and has a dividend yield of 31.0%. Clean Energy Fuels does not pay a dividend. Targa Resources Partners pays out 423.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clean Energy Fuels has increased its dividend for 7 consecutive years.
This is a summary of current recommendations and price targets for Targa Resources Partners and Clean Energy Fuels, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Targa Resources Partners||0||0||0||0||N/A|
|Clean Energy Fuels||0||0||0||0||N/A|
Institutional and Insider Ownership
35.5% of Clean Energy Fuels shares are held by institutional investors. 26.7% of Clean Energy Fuels shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Targa Resources Partners and Clean Energy Fuels’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Targa Resources Partners||N/A||N/A||N/A||$0.78||13.65|
|Clean Energy Fuels||$402.66 million||0.78||-$12.15 million||($0.37)||-5.62|
Targa Resources Partners has higher earnings, but lower revenue than Clean Energy Fuels. Clean Energy Fuels is trading at a lower price-to-earnings ratio than Targa Resources Partners, indicating that it is currently the more affordable of the two stocks.
Targa Resources Partners Company Profile
Targa Resources Partners LP is a provider of midstream natural gas and natural gas liquid (NGL) services in the United States with a presence in crude oil gathering and petroleum terminaling. The Company is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to liquefied petroleum gas (LPG) exporters; gathering, storing and terminaling crude oil, and storing, terminaling and selling refined petroleum products. The Company operates in two divisions: Gathering and Processing, and Logistics and Marketing. The Gathering and Processing division consists of two segments: Field Gathering and Processing, and Coastal Gathering and Processing. The Logistics and Marketing division consists of two segments: Logistics Assets and Marketing and Distribution.
Clean Energy Fuels Company Profile
Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company is engaged in supplying compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG) for light, medium and heavy-duty vehicles, and providing operation and maintenance (O&M) services for natural gas fueling stations. The Company designs, builds, operates and maintains fueling stations; manufactures, sells and services non-lubricated natural gas fueling compressors and other equipment used in CNG stations and LNG stations; offers assessment, design and modification solutions to provide operators with code-compliant service and maintenance facilities for natural gas vehicle fleets, and transports and sells CNG and LNG to industrial and institutional energy users having no direct access to natural gas pipelines, among others.
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